Property Plant and Equipment include:

• A) Assets used for administrative purposes
• B) Assets which are given on rental to others
• C) Assets held for production of goods or services
• D) All of the given options

In case of decrease in provision for doubtful debt, _____________ is debited.

• A) Payable account
• B) Doubtful debts account
• C) Provision for doubtful debts account
• D) Receivable account

All of the following items appear on credit side of Trade receivable control account EXCEPT:

• A) Cash received from debtors
• B) Cheques dishonored
• C) Bad debts
• D) Discount allowed

A payables ledger control account had a closing balance of Rs.9,000. A credit purchase of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 9,500 credit
• B) Rs. 10,000 credit
• C) Rs. 8,000 credit
• D) Rs. 8,500 credit

While preparing a Debtors Control Account, Credit side posted items cause:

• A) Increase in creditors’ balance
• B) Decrease in debtors’ balance
• C) Both increase and decrease in debtors’ balance
• D) Increase in debtors’ balance

_________________ is debited for closing the commission income for the period.

• A) Income statement
• B) Commission income
• C) Accrued commission
• D) Commission expense

Matching principle is applied in:

• A) Accrual basis
• B) Both accrual and cash basis
• C) None of the given options
• D) Cash basis

While preparing a Creditors Control Account, Debit side shows the items that will cause:

• A) Decrease in creditors’ balance
• B) Increase in debtors’ balance
• C) Both increase and decrease in creditors’ balance
• D) Increase in creditors’ balance

Prepaid expense at the end of the period is treated as:

• A) Asset
• B) Drawing
• C) Income
• D) Liability

Which of the following is a Tangible fixed asset?

• A) Factory Workshop
• B) Outlet where products are displayed
• C) All of the given options
• D) Car held for rent

_____________ is the systematic allocation of the depreciable amount of an asset over its useful life.

• A) Cost
• B) Market value
• C) Fair value
• D) Depreciation

Unearned income at the end of the period is treated as:

• A) Liability
• B) Assets
• C) Expense
• D) Drawings

Expense payable at the end of the period is treated as:

• A) Asset
• B) Drawings
• C) Income
• D) Liability

___________________ is posted in credit side of debtors account.

• A) Sales return and discount allowed
• B) Cash sales and credit sales
• C) Purchases return and discount allowed
• D) Cash purchases and credit purchases

In case of writing off debtors as bad debt, ____________ is credited.

• A) Provision account
• B) Payable account
• C) Doubtful debts account
• D) Debtors account

Rent income account should be debited due to:

• A) Rent receivable opening
• B) Rent receivable closing
• C) Rental income received
• D) Balance sheet account

_________________ is credited for closing the commission income for the period.

• A) Commission income
• B) Income statement
• C) Commission expense
• D) Accrued commission

A creditors’ control account is used to record all the transactions related to:

• A) Cash purchases
• B) Cash sales
• C) Credit purchases
• D) Credit sales

In case of goods sold on credit basis, _____________ is credited.

• A) Payable account
• B) Bank account
• C) Sales account
• D) Receivable account

In case of goods sold on credit basis, _____________ is debited.

• A) Debtors account
• B) Credit account
• C) Debit account
• D) Bank account